Currently there is a 50% abatement subject to conditions as per S.Tax Notf. No. 1/2006-Service Tax dt. 1st March, 2006. Now abatement is reduced from 50% to 40% , so you mean to pay the Service tax @ 12% on 60 Rs. if your gross amount of bill is 100 Rs. Effective date is 1.7.2012 but seems little clarification needed as news is there will be delay in implementing negative list & other changes by 3-4 months.
For an outdoor catering service where the contract is only for providing food, then no abatement is allowed as per the amended law. However, when food is provided along with the rent of the said premises where the programme is organized then abatement @ 30% is allowed.
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